Question
Hazelton Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company began 2018 with $84,100 in inventory of its
Hazelton Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company began 2018 with $84,100 in inventory of its only product. The beginning inventory consisted of the following layers:
4,700 units at $7 per unit | $ | 32,900 | |
6,400 units at $8 per unit | 51,200 | ||
Total | $ | 84,100 | |
During 2018, 6,700 units were purchased at $9 per unit and during 2019, 8,400 units were purchased at $10 per unit. Sales, in units, were 8,400 and 14,800 during 2018 and 2019, respectively.
Required:
1. Calculate cost of goods sold for 2018 and 2019.
2. Disregarding income tax, determine the LIFO liquidation profit or loss, if any, for 2018 and 2019.
-Calculate cost of goods sold for 2018 and 2019.
-Disregarding income tax, determine the LIFO liquidation profit or loss, if any, for 2018 and 2019.?-
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